Mktg 356 Acts
Magnuson - Moss Warranty Act (1975)
- *Established various regulations in warranty area* - People thought that written warranties were deceptive. - Implied Warranties with products (pen will write, watch will tell time) - Said that written warranties cannot get rid of implied warranties - Gives FTC power to issue rules and regulations in the warranty area.
Celler - Kefauver Act (1950)
- Amends Clayton Act by prohibiting mergers where there is purchase of assets of a firm. *Mergers aren't allowed if they have a huge impact on the market*
Trademark Law Revision Act (1988)
- Amends the Lanham Act to allow protection of brands *not yet introduced to the market*. - You can retain an old brand name as well, in case you wanted to use it in the future
Federal Trade Commission (Enforcement of Marketing Laws)
- Enforces FTC Act, Clayton Act, and various consumer protection acts - *Legislative* agency issuing rules and regulations, power to make laws - *Investigative* agency, nothing criminal can be done but they can still investigate you - *Administrative* agency and tribunal - *Enforcement* agency imposing civil penalties, most are deceptive ads where they prevent you from running it
Justice Department, Antitrust Division (Enforcement of Marketing Laws)
- Enforces Sherman Act and merger section of Clayton Act - Sherman act allows for triple damages, can collect triple damages from price fixing. NFL had to pay USFL a min. $1, sherman act made it $3. - Can bring criminal complaints which are often settled by No Contest pleas - Also brings civil complaints which are often settled by Consent Decrees= "without admission to guilt"
Consumer Product Safety Act (1972)
- Established the Consumer Product Safety Commission (CPSC) and granted them power to issue rules and regulations regarding product safety. - Congress doesn't have much power over them
Robinson - Patman Act (1936)
- Prohibits price discrimination on goods of like grade and quality (Mom and Pop started this). - Both buyers and sellers can be prosecuted. - Corrects Clayton act on the basis of *cost* not quantity - Real cost differences are a defense. - Promotional allowances must be on a proportionally equal basis.
Consumer Goods Pricing Act (1975)
- Repeals both the *Miller - Tydings* and the *McGuire - Keough* Acts - Viewed fair trade as a way to see things priced higher
Nutrition Labeling and Education Act (1988)
- Requires all processed foods to have labels that display nutritional information.
Federal Trade Commission Act (1914)
- creates the FTC - Prohibits unfair methods of competition where it substantially lessens competition or causes injury to a competitor. *Focuses on false and deceptive advertising*
Wheeler - Lea Act (1938)
-Amended FTC Act to prohibit unfair trade practices that cause injury to consumers. - Made the FTC Act a consumer protection act
McGuire - Keough Act (1952)
-Exempts non-signers clauses from federal jurisdiction and scrutiny - State now determines if non signer is legal - Pharmacies benefited from fair trade and started to sell food and retail products
Miller - Tydings Act (1937)
-Exempts state fair trade laws from the Sherman Act - Manufactures can negotiate with retailers now - Showed that fair trade laws can work -Agriculture, and baseball
Hart - Scott - Rodino Antitrust Improvement Act (1976)
-FTC and Justice Department must be notified in the case of certain mergers where the *acquired* firm has over 13.6 million in assets and the *acquiring* firm has over 136.4 million in assets. - This makes it possible to avoid problems with the government before you enter into a merger
Sherman Antitrust Act (1890)
-Prohibits contracts, combinations, and conspiracies in restraint of trade. - Prohibits monopolies and attempts to create them. -Prohibits price fixing
State "Fair Trade" Laws (1930s) (Resale Price Maintenance)
1930-Great Depression - Allows manufacturers to set the min. retail price for goods. - included a *non-signers clause*- all vendors must sell their products at no less than the minimum price assigned by the supplier, even though they have not signed any contract
Pure Food and Drug Act (1906)
1st Federal consumer protection act
"Fair Packaging and Labeling" Act (1966)
Package must show; *- name and location of manufacturer* *- "net" contents in a prominent place* - Gives FTC power to issue rules and regulations
Clayton Act (1914)
Prohibits- *price discrimination*- charging 2 different prices to 2 different buyers *exclusive dealings*- having an agreement with a retailer to only sell your products *tying contracts and mergers*- tying two products together in which if you want one, you have to buy the other. where they substantially lessen competition.
Lanham Act (1946)
Protects trademarks, brands, and brand names